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Web banking grew in popularity for banks and their customers around the turn of the century – and for good reason. For banks, internet banking means fewer resources and materials while banking customers are given greater control of their money. Internet business banking has also become widely popular, allowing the businessperson to bank when it suits him/her without being restricted by bank opening hours, saving them time and money.
According to a survey compiled by Alliance and Leicester, 92 percent of expats are using online banking facilities as a method of managing their money. While nine out of ten expats are using internet banking,"only a third is opting to open an offshore savings account”.
Online banks are great aren’t they? Well yes, in the main online banks are fast, efficient and extremely safe. Online banks also offer high interest rates, which is of course one of the main reasons we love them. Before we big up online banks too much, it is only fair to the bricks and mortar alternative that we point out three disadvantages to banking online.
Customer service is extremely important but is often overlooked in the clamour for other frills and conveniences. It is only in the last few years we have started to see TV advertisements focusing on customer service as well as interest rates and other incentives – a clear response to dissatisfaction among bank customers. It is the area of customer service, however, that we find the Achilles heel of online banks.
You will never get to know staff at an online bank so forming a relationship is impossible. A good relationship with a member of staff can make life a lot easier and improve your chances of receiving good service. Also, by visiting a branch you get to know who is the most efficient staff member. Armed with this sort of knowledge means you can then single them out whenever you have some business to conduct.
A faceless bank is an online bank. Whenever you call customer services you are entering a lottery. When the phone starts ringing you often find yourself wondering: Will they be friendly and polite? Which country am I calling? Will they be helpful and knowledgeable?
Another flaw – one that seems to fly in the face of everything an online bank stands for – is the length of time it takes to process a cheque. Firstly, you have to send a cheque to your bank by mail rather than drop it into your branch. It then may take a day or two before the bank begins to process the cheque, something that can take another three to five days. When you need money fast this kind of drudgery can be infuriating.
One more fly in the ointment is technical difficulty. Online banking relies on its website to works 24/7 – anything short of that can lead to immense frustration and general inconvenience. If you need access to your money, or want to pay a bill from your online account and the site is not working, you could be left high and dry. Naturally, there will be a support telephone number, but one that line is probably clogged and secondly the staff are likely to be suffering similar problems at their end.
It always pays to keep some emergency funds elsewhere for such occasions.
Online banking has its detractors and legitimately so. Many feel UK online bank accounts are easily subjected to computer hackers and other criminals. With computer criminals advancing in line with technology, some net banking users have experienced unauthorised withdrawals from their online bank accounts. However, in the most part, computer banking is extremely safe and used by millions.
Online Banking is an easy and convenient way to manage your money. Virtual banking offers greater convenience to the customer and provides a fast and effective way to manage your account – all without visiting your branch or standing in queues.
As well as bill payments through online bank accounts, a web based bank enables you to:
In addition, online banking is made possible wherever you have Internet access; at work, home or an Internet café.
Note: When banking online in a public place do so with care.
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